How AI changes the Supply Chain (for the better).

How AI changes the Supply Chain (for the better).

The management of Supply Chain is among the first three industrial forms to have benefited most from the adoption ofArtificial intelligence.

This is confirmed by the latest McKinsey Global Survey on AI, released at the end of 2021, which also speaks of a 76% of companies significantly enhanced by this adoption. This is a trend that is destined to improve in 2022.

Artificial intelligence, in fact, plays an important role inoptimization of the modern supply chain, offering a significant competitive advantage which also has repercussions on warehouse logistics.

This is why it is important to rely on professionals, such as those of our team, who will be able to direct you and follow you in the design that best suits your needs, and offer you the technological solutions already developed by TOD System.

In a constantly and advancedly evolving field like this, therefore, those entrepreneurs who are not already implementing artificial intelligence are running the risk of being left behind.
Below, we will see better how AI has innovated the Supply Chain and what its operational advantage specifically consists of.

Why implement AI in Supply Chains

If implemented and used correctly, artificial intelligence can enable exceptional performance in terms of agility And precision, automating repetitive tasks while triggering a decrease of the costs.

Furthermore, there are many applications of artificial intelligence in the supply chain, including AI-enabled robots like ours todrobot TR1, but let's go step by step.

What must first be highlighted is how AI surpasses human capabilities in managingimmense volume of data generated by a typical supply chain.

This is why supply chain managers are increasingly choosing to rely on AI for data analysis and tracking. This ensures better efficiency in detect anomalies And generate forecasts to improve the Supply Chain, from upstream to downstream: from the first to the last mile.

Furthermore, AI can be a great ally in mitigate unexpected events.

L'artificial intelligence is in fact able to respond promptly, finding alternative solutions to those identifiable with traditional approaches.

Approaches which would, moreover, require a greater expenditure of time and resources which could be reinvested differently, and better, within the Supply Chain.

Finally, it is worth underlining how the competitive advantages guaranteed by AI are fundamental in light of the competitiveness of the current market and the high digitalisation of processes.

AI technologies undoubtedly generate sustainable short-term investment returns, therefore creating new concrete investment opportunities.

What differentiates AI-based supply chains from “traditional” ones? 

The main differentiation between traditional systems and supply chain planning systems based on artificial intelligence lies in system construction same.

In the second case we are talking about systems built using codified algorithms to optimize this process and satisfy a predefined objective.

In supply chains, based on artificial intelligence, the Machine Learning to improve system-generated demand forecasts.

This practice is particularly useful for identify seasonal patterns and plan: promotions and new product introductions.

A further advantage which also has repercussions on all those repetitive operations which, thanks to ML, the system can learn to recognize and manage in perfect autonomy.

In the case of planning in intermittent or exceptional circumstances, however, the AI system is also programmed to allow human intervention within the processes.

Applications for the benefit of Logistics

The application of artificial intelligence in the supply chain has repercussions on the Logistics, a fundamental part of the supply chain itself. 

This is a constantly developing area, which is showing all its potential in recent years, and which already highlights many advantages in terms of:

  • Forecasting consumer trends. Thanks to the use and analysis of big data to cross-reference internal information. The system, thus, is able to deduce users' consumption trends and therefore predict demand behavior. 
  • Automation of operating cycles. THE warehouses 4.0 they combine two fundamental systems: robotics and management software. By integrating systems, artificial intelligence helps optimize resources and correct movements in the event of changes in flows.
  • Transport coordination. AI can also manage freight fleets by interpreting and incorporating up-to-date traffic information. It therefore tracks the most convenient routes for delivery and corrects them in real time.

A Supply Chain, enhanced by artificial intelligence, finally allows the real-time inventory management; as well as issuing instant supply orders and order tracking, improving the traceability systems. In this way, in the case of e-commerce, it is also possible to answer customer questions about the location of the expected package. A service that can also be rendered through the implementation of Chatbots equipped with artificial intelligence.

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Technical catalog on integrated robotic solutions for warehouse logistics.